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Saving Money on Teen Car Insurance

Written by Michele Wilmonen. Posted in Research Last Updated: 08/15/2015

There is no doubt that teen car insurance is expensive, but there are ways to help cut that cost.

Teen car insurance is the furthest thing from a new driver’s mind, but it’s at the forefront of their parent’s mind.


Because of the huge impact that it has to the family’s insurance premium. Young drivers are the most expensive group of drivers to insure, without question. But don’t worry parents, there are ways to keep the cost of insuring your teen driver down.

Hold Off Getting License

The primary way of helping to keep your teen car insurance cost down is by not having any cost at all. You can do this by suggesting that your teen not get their license yet or having them keep their permit for a longer period of time.

While these ideas are most likely not going to go over well with your teen driver, remember, you are the parent. In the end, it is you and not your teen who has the say as to when they get their driver’s license while they are under 18. In most cases, it will also be you that will be paying the extra insurance costs, so keep that in mind when they are trying to convince you that they can’t go on living without having a driver’s license.

Stay on Parent’s Car Insurance Policy

Teen car insurance is cheaper when it is included on the parent’s car insurance policy than if the teen were to be insured alone on their own policy. Per, teen car insurance is 20% more expensive when the teen driver is insured alone.

Being able to keep your teen on your car insurance policy while they are under 18 is a given, but once they are an adult, it gets a little trickier. If they are still living with you or away at school, you can keep them on your car insurance policy. However, once they move out on their own you will need to talk to your insurance company or agent as to whether or not you can keep them on your policy.

Make Teen Drivers Pay Their Part

One of the ways you can start preparing your teen for living out on their own is to teach them the financial responsibility of paying for their own insurance. No, they aren’t going to like this idea but it is best that they learn now that if they can’t afford to pay for their car insurance that they can’t drive.

For more ways to save on teen car insurance, contact your insurance agent or insurance company.

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Michele Wilmonen

Michele’s first introduction to insurance was working for a major insurance company as a file clerk and a mailroom supervisor in a regional office. She learned insurance directly from underwriters and claims adjusters from questions and also watching them do their job. Since then, she’s earned a number of insurance certifications from the Insurance Institute of America and also a Bachelor’s degree from the University of Idaho. She blogs at Car Insurance Guidebook.

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